How your car insurance quote is calculated
There are a number of factors that determine how much your insurance will cost you. These include:
The car's value and insurance category - Insurance companies place vehicles in different categories depending on their value and performance. The categories range from Group 1 to Group 20. The higher the group number, the higher the price for your car insurance.
Postcode Where you live can impact greatly on the amount you pay. If you live in a city environment then you can expect to pay a lot more than those who live in a rural setting. Adding additional security measures such as alarms and immobilisers to the vehicle can help reduce the cost.
Claims History - Building up a large no claims history proves to the car insurance companies that you are of low risk. Different insurers operate their no-claims bonuses in different ways. A typical example would be a 30% discount after a years driving without making a claim. If you build up to five years no-claims then you could save up to 65%.
Age and experience Drivers under the age of 25 or newly qualified drivers are seen as high insurance risks. Age and experience plays a big part in how much your insurance costs you, so the older you are and the more experience you have then the less you will have to pay.
Occupation Your occupation can affect car insurance premium. If you are a celebrity or you're in the entertainment business then this makes you a higher risk than, for example, a teacher.
About the Author: Nick is a UK based writer
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